BILL NO. 82

(as introduced)

2nd Session, 61st General Assembly
Nova Scotia
59 Elizabeth II, 2010



Government Bill



Offshore Licencing Policy Act



The Honourable Bill Estabrooks, M.B.
Minister of Energy



First Reading: November 3, 2010

Second Reading: November 8, 2010

Third Reading: December 10, 2010 (WITH COMMITTEE AMENDMENTS) (LINK TO BILL AS PASSED)

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An Act Respecting
a Moratorium on Petroleum Activity
on Georges Bank

Be it enacted by the Governor and Assembly as follows:

1 This Act may be cited as the Offshore Licencing Policy Act.

2 The purpose of this Act is to direct the Minister of Energy to use the Minister's powers and authority under the Accord Acts to ensure that no person engages in exploration or drilling for or the production, conservation, processing or transportation of petroleum on Georges Bank until a resolution is passed by the House of Assembly accepting a recommendation to permit the licensing of petroleum interests and activity, in whole or in part, on Georges Bank.

3 In this Act,

(a) "Accord" means the Canada-Nova Scotia Offshore Petroleum Resources Accord dated August 26, 1986, and entered into by the Government of Canada, as represented by the Prime Minister of Canada and the Minister of Natural Resources, and by the Government of Nova Scotia, as represented by the Premier of Nova Scotia and the Minister of Mines and Energy;

(b) "Accord Acts" means the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act (Canada) and the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation (Nova Scotia) Act;

(c) "Board" means the Canada-Nova Scotia Offshore Petroleum Board established under the Accord Acts;

(d) "fundamental decision" has the same meaning as in the Accord Acts;

(e) "Georges Bank" means that portion of the offshore area described in Schedule IV in each of the Accord Acts;

(f) "Minister" means Minister of Energy;

(g) "moratorium" means the prohibition on exploration or drilling for or the production, conservation, processing or transportation of petroleum on Georges Bank.

4 (1) In the event of a conflict between this Act and the Accord Acts, the Accord Acts prevail.

(2) In the event of a conflict between this Act and the Accord, the Accord prevails.

5 (1) This Act does not affect the current moratorium provided for in the Accord Acts.

(2) This Act does not affect the Minister's authority under any enactments other than the Accord Acts.

6 For the purpose of this Act, the Minister shall

(a) exercise the Minister's power and discretion in respect of fundamental decisions so as to effect the moratorium;

(b) inform the Board that it is a matter of public interest that no petroleum licensing or commercial seismic activities take place on Georges Bank unless a resolution has been passed by the House of Assembly accepting a recommendation to permit the licensing of petroleum interests and activity, in whole or in part, on Georges Bank;

(c) seek agreement from the Minister of Natural Resources for Canada to take a similar position and jointly direct the Board under the Accord Acts accordingly; and

(d) consult with the Minister of Natural Resources for Canada to develop mirror provincial and federal legislation to implement this Act.

7 Where at any time the Minister is of the opinion, based upon evidence, that

(a) adverse environmental risks from petroleum activities on Georges Bank are not significant, given the industry practices in Canada and technology for environmental protection;

(b) offshore petroleum exploration and development activity on Georges Bank is attractive to industry due to the cost of developing potential petroleum resources and the long-term projections for resources prices; and

(c) there are prospects for revenue streams and economic impacts of a significant nature to the benefit of all Nova Scotians, including those in southwest Nova Scotia, from petroleum activity on Georges Bank,

the Minister may recommend that Executive Council order a public review to determine if the moratorium should be continued or be lifted in whole or in part.

8 (1) Where Executive Council orders that a public review be conducted, the Executive Council shall specify the time within which the public review is to take place, the manner in which it is to take place and the form and manner in which a recommendation is to be prepared for the Minister's consideration and may

(a) establish terms of reference and a timetable that will permit a comprehensive review of all aspects of the matter;

(b) appoint one or more persons to conduct the review; and

(c) direct those persons to hold public hearings in appropriate locations in the Province and report to the Minister.

(2) The Governor in Council may confer on the persons appointed pursuant to clause 8(b) all or any of the powers, privileges and immunities conferred on persons appointed as commissioners pursuant to the Public Inquiries Act.

9 Where a public review under this Act results in a recommendation that the moratorium is no longer necessary, in whole or in part, the recommendation must be presented to the House of Assembly by the Minister for a vote on whether to accept the recommendation.

10 Where a resolution under Section 9 to accept the recommendation is passed by a majority vote of the House of Assembly, the Minister shall endeavour to implement the outcome of the resolution through the authority given to the Minister under the Accord Acts.

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